Macro-prudential
Now banks face bail-in, should we rethink deposit insurance?
David Mayes argues deposit insurance schemes forged during crisis may impose unnecessary costs in more normal times
Namibian central bank wary of household debt increase
Namibia has higher household debt levels than regional peers, according to some measures, the central bank’s latest financial stability report notes
Riksbank-FI merger not on the table – Swedish minister
Per Bolund says the government is not actively considering radical reform options discussed by the Riksbank, and defends Swedish approach to macro-prudential independence
BoE paper evaluates macro-prudential roles of bank capital regulation and monetary policy
Authors find counter-cyclical regulation is more effective than monetary policy in promoting stability in the wake of a credit shock
Political and public support ‘critical’ for macro-prudential policy, says Kohn
Effective communication can help ensure public support for macro-prudential policy, BoE FPC member says; lack of support could encourage political interference
Inflation targeting ‘key' for successful de-dollarisation – IMF working paper
Peru's success story suggest "sound" monetary and macro-prudential policy can help de-dollarisation, paper says; favourable global environment helped in case of Peru
IMF staff call for new macro-prudential tools in Denmark
Danish authorities told to consider placing limits on debt to income ratios; macro-prudential measures suggested by IMF staff to complement existing regulation
Cunliffe warns of tough transition to new resolution regime
Going back to world of small, less complex banks is not how to solve ‘too big to fail’ problem, BoE deputy suggests, instead favouring a ‘multi-pronged’ regulatory approach
Panellists at ECB conference challenge complexity of macro-prudential set-up
Public and private sector representatives agree it is too early to judge macro-prudential framework; identify some positive elements but raise concerns about institutional complexity
ECB paper explores public and private employment link
Research contradicts literature that claims an increase in public employment crowds out private employment, at least in recessions
BoE paper explores impact of prudential measures abroad on UK bank lending
No “significant” spillovers to bank lending following prudential measures, authors find, while composition of lending can change when domestic actions are taken
Constâncio points to systemic risk from investment funds
ECB vice-president Vítor Constâncio says increased size and risk-taking by under-regulated investment funds call for new powers for regulators
Macro-prudential policies should apply to shadow banking sector, researchers argue
Macro-prudential policies can have substitution effects between bank and non-bank credit, working paper says; macro-prudential policy should be extended towards the non-bank sector
Conditions for lifting capital controls ‘could hardly be better' – Guðmundsson
Central Bank of Iceland governor says it is important to press ahead with liberalisation while the economy is strong and financial system stable, in latest financial stability report
Carney speaks of ‘new’ financial system to support sustainable finance
Bank of England governor launches FAIR initiative; FSB members developing more ‘effective’ macro-prudential policies to support system
Swedish regulator takes second stab at amortisation rule
Macro-prudential regulator unveils plans for mandatory amortisation similar to those struck down by the Swedish judiciary in 2015
Australian governor Stevens sees more viable options than helicopter money
Reserve Bank of Australia governor identifies a host of practical issues to helicopter money, and says there is more governments can be doing before then
IMF will consider macro-prudential policies in capital flow ‘stock-take’
Lagarde sheds light on stocktaking exercise that will use Article IVs over past three years to assess how IMF’s guidance on “capital flow management” has worked in practice
The People’s Bank of China’s internet finance dilemma
China’s central bank faces a challenge encouraging the development of market-based internet financial services while regulating a business where a $7.6 billion Ponzi scheme recently blew up
Medium-sized banks are main contributors to systemic risk in Brazilian interbank market, paper says
Emergence of bank communities may act as triggers for systemic risk, stress test scenario shows; medium-sized banks carry non-negligible default probabilities
Prudential measures may create risks for developers – RBA
Tighter regulations designed to tackle housing risks may cause problems for large building projects started before the tougher rules came in
Riksbank lays out ideas for macro-prudential overhaul
Executive board accepts many – but not all – recommendations of King and Goodfriend review, and offers some radical ideas of its own
Poloz: CCA central banks ‘challenged’ in meeting their core objectives
New BIS Americas head believes financial stability should be built into regional policy decision-making even when not specifically stated as a core mandate; macro-pru "in sight" for many in region
Italian firms' leverage well above average, study finds
Italian non-financial companies’ leverage ratios are significantly above the eurozone average, a working paper shows